Under the TREC Addendum for Sale of Other Property by Buyer, the seller retains the right to continue marketing the property. If the seller receives another acceptable offer while the first buyer's property is still on the market, what typically happens?
Correct Answer
B) The first buyer is given a specified number of days to waive the contingency or the contract terminates
Under the TREC Addendum for Sale of Other Property by Buyer, if the seller receives another acceptable offer, the seller gives the first buyer notice. The first buyer then has a specified number of days to waive the sale contingency and proceed, or the contract terminates.
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Related Topics & Key Terms
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Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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